Deeds of Gift

These notes are intended to provide you with some initial guidance following the indication you have given that you wish to consider a Deed of Gift of either part or the whole of your property.

They are by no means comprehensive and we must advise you that it will almost certainly be necessary for us to discuss your personal circumstances and the direct implications with you. They are, however, provided to give you some initial background information with regard to the potential advantages and disadvantages of proceeding with a Deed of Gift.

Ownership

The entering into a Deed of Gift legally transfers the ownership of the property from you to the individual or individuals nominated by you. Once the documentation has been executed you have, technically, no direct legal interest in the property unless you transfer ownership to yourself and others to share.

Please do, however, see the section below entitled "Occupation".

We appreciate that in many, if not virtually all situations, the gift is likely to be made to family members and you will probably therefore imagine that there will be no future difficulties. We would, however, advise you that no specific guarantees can be given and, subject to our comments below, we do like to ensure that you have considered the possible future circumstances of yourself and your family before you proceed.

Occupation

You will, if you intend to proceed with the Deed of Gift to transfer the whole of the property, need to seriously consider your rights of occupation. Many clients believe that on the basis the gift is being made to children or family members they will be "quite safe" for the future and do not need any particular agreements or guarantees. We must, however, advise you to seriously consider entering into a formal written Agreement with regard to your rights of occupation for the future. That would most certainly ensure that many of the difficulties or misunderstandings which could arise, are covered. A simple Agreement can give you complete peace of mind with regard to your occupation of your home for the future.

Expenditure

Clients often ask us what happens with regard to the expenditure upon the property following the completion of a Deed of Gift. We generally advise them that, subject to agreement between the parties, the payments can be made either by you or the new owners. It is important that you consider the position with regard to the insurance, maintenance and service expenditure and we would be pleased to discuss these particular aspects with you, in detail if necessary and then incorporate your decision into the Agreement referred to above.

Tax Implications

Many clients often ask; what are the potential tax implications of entering into a Deed of Gift.
We would, in any event, ensure before you proceed that you are fully aware of the position - we would need to ascertain from you the value of your assets and whether or not, subject to the value of the property in question, there would be any potential Inheritance Tax liability upon your death.

Please do not hesitate to contact Mark Burn or Claire Waterhouse in complete confidence if you wish to discuss any matters relating to this area.